Analyzing the competitiveness of low-carbon drive-technologies in road-freight: A total cost of ownership analysis in Europe
Open access
Date
2022-01-15Type
- Journal Article
Abstract
In light of the Paris Agreement, road-freight represents a critically difficult-to-abate sector. In order to meet the ambitious European transport sector emissions reduction targets, a rapid transition to zero-carbon road-freight is necessary. However, limited policy assessments indicate where and how to appropriately intervene in this sector. To support policy-makers in accelerating the zero-carbon road-freight transition, this paper examines the relative cost competitiveness between commercial vehicles of varying alternative drive-technologies through a total cost of ownership (TCO) assessment. We identify key parameters that, when targeted, enable the uptake of these more sustainable niche technologies. The assessment is based on a newly compiled database of cost parameters which were triangulated through expert interviews. The results show that cost competitiveness for low- or zero-emission niche technologies in certain application segments and European countries is exhibited already today. In particular, we find battery electric vehicles to show great promise in the light- and medium-duty segments, but also in the heavy-duty long-haul segments in countries that have enacted targeted policy measures. Three TCO parameters drive this competitiveness: tolls, fuel costs, and CAPEX subsidies. Based on our analysis, we propose that policy-makers target OPEX before CAPEX parameters as well utilize a mix of policy interventions to ensure greater reach, increased efficiency, and increased policy flexibility. Show more
Permanent link
https://doi.org/10.3929/ethz-b-000517653Publication status
publishedExternal links
Journal / series
Applied EnergyVolume
Pages / Article No.
Publisher
ElsevierSubject
Technology policy; Energy policy; Techno-economic modeling; Trucks; Electric vehicles; Energy transition; Mobility transition; Hydrogen; Fuel cell; Hybrid; Natural gasOrganisational unit
09550 - Schmidt, Tobias / Schmidt, Tobias
02890 - Inst. of Science, Technology and Policy / Inst. of Science, Technology and Policy
09742 - Steffen, Bjarne / Steffen, Bjarne
Funding
948220 - Effective green financial policies for the low-carbon transition (EC)
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